Warren Buffett's investment in Apple has tripled in value to north of $100 billion. Buffett's Berkshire Hathaway spent about $35 billion to build the 5.7% stake in Apple The 10% rise in Apple's stock price on Friday boosted its value to about $104 billion. Business Insider reports that Berkshire's Apple position is now worth more than four times its second-largest holding, Bank of America. Industry analysts call Buffett's investment into Apple "one of the best investments ever."
(CNN) Tesla CEO Elon Musk just zoomed past Warren Buffett on the Bloomberg Billionaires Index to become the world's seventh wealthiest person. Musk's fortune rose more than $6 billion Friday after Tesla's stock surged 11% to a record $1,544 per share, according to Bloomberg. At the same time, Buffett's fortune fell this week after he donated nearly $3 billion worth of Berkshire Hathaway stock to charity — part of his plan to give away most of his wealth to philanthropic ventures.
President Donald Trump criticized Warren Buffet for getting rid of his airline investments. While Trump said he had “a lot of respect for him,” he said even people like Buffet “make mistakes.” Buffett owned between 8% and 11% of American, Delta, Southwest and United but sold them all in April 2020. According to Business Insider, Buffet criticized Trump in the past and endorsed Hillary Clinton. He then called Trump about not publishing his tax returns and using an IRS audit as an excuse.
Bernstein analyst Tony Sacconaghi says Tesla shares are far too expensive to recommend after more than tripling in 2020. The firm lowered its Tesla stock rating to "underperform" from "market perform" on Tuesday. It maintained a $900 price target, implying that shares will tumble 42% over the next year. Tesla recently beat earnings and crept closer to inclusion in the S&P 500. Sacconaghi said its valuation "is mind-boggling," the analyst wrote.
Exencial Wealth Advisors' David Yepez expects another profitable quarter from Tesla Wednesday that could clear the way for it to join the S&P 500. He also tells Reuters' Fred Katayama investors should snap up shares of Akamai and Sanofi on a market pullback.
The S&P 500 and the Nasdaq finished slightly higher on Friday but the Dow closed with a loss as investors kept an eye on record new coronavirus cases in the U.S. Conway G. Gittens wraps up the trading action.